Once you create an estate plan, the last thing you want to do is go back and look at it again. However, laws change all the time, as well as things like your family structure, wealth and assets.
Unfortunately, if you fail to review and update your estate plan occasionally, gaps may occur. Knowing what the most common gaps are in estate plans will help you figure out what needs updating to ensure no issues are present.
Missing components
At the very least, your estate plan should include a will, advanced medical directive and financial power of attorney. However, there are other documents that may be beneficial based on your situation. Reviewing and updating your estate plan with the proper documents is recommended to ensure all your bases are covered.
Personal effect planning
Even though this part of your estate plan isn’t as important as others, you should still outline what you want to happen to your personal items. This includes family heirlooms, jewelry and similar items. Failure to do this can result in arguments and conflict among your family members.
Life insurance updates
Your life insurance policy is part of your estate plan. However, if you haven’t reviewed it since it was first executed, it’s important to do so now. Sometimes, you may review the policy and discover liabilities that need to be resolved.
Reviewing and updating your estate plan is recommended
It’s important to review and update your estate plan regularly. This will ensure that your plan reflects your life today and that there aren’t any gaps present. Knowing your legal options is the best way to ensure that your estate plan will perform as you need it to when you pass away.